Artificial Intelligence in Advertising: Examples & Applications

Reading Time: 5 minutes Artificial Intelligence (AI) is considered

Reading Time: 5 minutes

Artificial Intelligence (AI) is considered as an umbrella term that generally covers different technologies like computer vision, machine learning, computer network, pattern recognition, deep learning, speech recognition, and many more. AI technologies are surely very technical for a layman to understand, but as a marketer, you don’t need to dive deeply into those technicalities for taking its advantages.

In this flood of AI revolution, many organizations want to take leverage on building their brand marketing strategies. With the help of AI, any organization can create a great “personalized customer experience” at a very low cost. That’s why 40% of sales and marketing teams rely on AI & machine learning techniques for their operations.

Some more facts on AI for marketing from different research organizations:

  • By providing better recommendations with the help of machine learning enabled algorithm, Netflix made sure that they didn’t lose out on $1 billion which they’d have otherwise due to cancellation of subscription
  • A report by Gartner reveals that by 2020, 85% of customer’s relationship will be maintained by non-humans.

Many organizations around the globe are using AI for their advertisement campaigns. AI’s relation with advertising goes hand in hand because AI analyzes data better than anyone (even humans) at a large scale. Advanced AI learns from data to do better analysis and then make predictions & recommendations accordingly.

Moreover, consumers are paying attention to digital advertising these days on various digital platforms like Instagram, Facebook, YouTube, and other social media channels.

So let’s look at real life examples of AI in the advertisement

Netflix Recommendations

We are often surprised when Netflix recommends our favorite movies and TV series. These recommendations are purely based on your behavior on the application. Let’s try to understand that,

How Netflix knows “what we want to or going to watch??”

An individual’s surfing behavior on application plays a crucial role here. Netflix analyzes your surfing patterns i.e. your taste for movies or web and TV series, how many times you watched a particular genre movie, how you watched that movie – are you fast forwarding it or rewinding it. After considering all these myriad variants, you get recommendations on your application.

Here AI, not just fulfills users’ needs but also internally promotes web and TV series and movies. This gives an additional benefit to content makers, as their views are continuously increasing and this can over a period of time translate into coming onboard of more subscribers.

Google always shows a special interest in AI and ML. Many people don’t know that Google Ads has already implemented AI in its advertisement model. AI helps to identify the users’ taste, and as per that, it shows Ads. This approach gives a high return on investment (ROI) to the organization.

In April 2018, Google came with a silent update. They announced that they would start offering Ad recommendations on Google Ads Recommendation page. Only the selected amount of people got this news via mails and most of the marketers didn’t even noticed it.

To simplify this update, “Google is generating ads for your campaign.” Yes, you read it right. Google Ads is using AI to create text ads and these ads will go live in your account after 14 days. You also have an option to opt-out from this new feature.

Facebook AI

Nowadays, social networking sites are selling their confidential data to corporates and this data is nothing but yours and my personal information. This could be our demographic info, our taste towards a particular segment, our buying behaviors, etc.

But Facebook, on the other hand, targets our data in a different approach. As Facebook itself is a market leader, it uses AI for research and development purposes.

“AI in advertising” is becoming a pinnacle, that’s why Facebook uses it as prior equipment which they named as “FBLearner Flow.” This program dedicatedly works on user behavior on Facebook.

How we behave after seeing a particular ad, what we buy, how we buy, is that ad useful to us, what we ignored, why we ignored that ad, is that ad worth it, even what are we going to think before purchasing, questions like these and hundreds others are taken into consideration in this AI program to make user experience and advertising model much better.


Facebook’s sister company Instagram, with 1 billion monthly active users uses AI in various ways. AI changed the business parameters worldwide and became the second-largest marketing trend right after customer personalization.

Just like other market giants, Instagram is also taking full advantage of AI. Instagram data is very valuable as it became the 6th most popular social networking site for July 2019, as per Statista.

Instagram data provides a numerous amount of insights to various businesses, which are interested in selling their products and services. Instagram, on a daily basis monitors “search preferences” and “user engagement” of its users. Instagram provides a restricted amount of data to advertisers, measurement partners, researchers and academics. In this way, some of the advertising companies can reach to you and me with a specific marketing message. Not only this, but Instagram also observe our likes, dislikes, whom we follow, whom we block and many other aspects.

Advertisement on Instagram is offered in 6 ways

  • Stories ads
  • Photo ads
  • Video ads
  • Carousel ads
  • Collection ads
  • Ads in explore

After having a brief on the usage of AI in multiple channels, let’s have a look at some applications of AI in marketing & advertising.

Applications of AI in Advertising

Digital Advertising

As discussed above, digital advertising and AI are very close with one another. Many leading IT and internet-based organizations are using AI for making user friendly ads, as per users’ tastes and needs.

For achieving this goal, organizations are analyzing user data on a daily bases like their demographical information, interests, and many other aspects to detect their brand value in the eye of the user.

Google AdWords have already implemented an automatic action based system where the advertisers have to pay the lowest amount per conversion.

Ad Ceation

These days AI technology is moving towards its peak. There are many AI powered system exists which can create full or partial ad campaigns for you.

This tech is already available on various social media ad creation platforms. These system use AI based information to suggest structure and content of ads content to the advertiser based on their website theme and content.

But this smart technology is also available in some third party solutions which use the algorithm to write ad copy for advertisers.

Natural language processing (NLP) and Natural Language Generation (NLG) are the two AI powered technologies which are used to perform the task. And, these AI based tech are far better than human written ad copies, both in quality and consumption time.

Programmatic Advertising

Programmatic advertising is one of the critical applications of AI in advertising. This is an automated way to buy and sell your ad inventory through an exchange, just like selling or buying a share from share market exchange. Here an advertiser connects with publishers.

AI plays an essential role in binding up everything. With the help of AI based algorithms, real time bidding for ad inventory goes live for mobile ads, video ads and sometimes for TV ads as well.

Now let’s have a look at those companies which are dedicatedly using AI for advertising.

Top 3 Companies using AI for Advertisement


Amplero is a Seattle based organization that uses AI for marketing. Here, customer interactions are made more frequent with all the channels.

Amplero, provides customer data in a very unique and friendly way. Your team can use that data as they require it, and most importantly, they can experiment with that data for future references.

They also display important patterns to help your team to create creative and new strategies.


GumGum is a Santa Monica based organization that has worked with almost every well know big shot like L’Oreal, T-Mobile, Johnson & Johnson, etc. GumGum innovates applied computer vision technology that helps advertisers and marketers to place their ads more strategically on various platforms.

GumGum allows AI to scan photos and videos that span across multiple platforms, and this allows marketers to create more relevant ads for their customers.


Lobster is an AI powered platform that allows marketers and advertisers to generate social media content and ads after analyzing major social networking sites.

They use AI and ML algorithms to create and identify the most relevant content.  And also provide cloud space to store your content, images, and videos.

Also Read:

5 Ways Artificial Intelligence Helps in Personalized Marketing

Artificial Intelligence for Edge Computing

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